TMI Blog2019 (6) TMI 1680X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted as it is against the provision of Section 55A of the Act as applicable prior to the amendment. ITAT Mumbai Bench in the case of Shri Rabinder H Chhabra(HUF) [ 2014 (6) TMI 283 - ITAT MUMBA ] has taken into consideration similar plea of the Revenue that if assessment proceedings is pending then cognizance to amended provision of section 55A effective from 1.7.2012 could be made. ITAT Mumbai Bench on strength of Hon ble Bombay High Court decision in the case of CIT Vs. Puja Print [ 2014 (1) TMI 764 - BOMBAY HIGH COURT ] has held that such amendment would be applicable to the assessment proceedings subsequent to 1.7.2012. In that case, assessment year involved was 2006-07. As relying on Gauranginiben S. Shodhan [ 2014 (2) TMI 78 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... situated at survey no.193 and 194, TP Scheme No.32 (Gota), F.P.No.126 admeasuring 10121 sq.meters at Gota, Ahmedabad for Rs.4.50 crores on 30.5.2011. Assessee s share thus came to Rs.90,00,000/- being 1/5th of the share. For the purpose of capital gain assessee has submitted valuation report of a registered valuer who adopted the cost of acquisition of the property as on 1.4.1981 at Rs.250/- per sq.meter. The working of the capital gain made out by the assessee as per the registered valuer s report is as under: Total value of land as on 1.4.1981 (i) Area of land : 10121 sq.meters (ii) Rate adopted : Rs.250/- per sq.meter (iii) Value of the property as on 1.4.1981 Rs.25,30,250/- say Rs.25,31,000/- (Cost of acquisition to asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .DR supported the orders of the Revenue authorities. 6. With the assistance of the ld.representatives, we have gone through the record carefully. We find that the dispute is with regard to calculation of cost of acquisition as on 1.4.1981 and the applicability of amended section 55A(a) w.e.f. 1.7.2012 for making reference to the DVO. Assessee has declared the value for the cost of acquisition of the property as on 1.4.1981 at a higher value than the value determined by the DVO. The case of the assessee is that reference under section 55A(a) could be made only when the value adopted by the assessee was less than the fair market value, and in the present case value adopted by the assessee at Rs.35.99 lakhs was much more than the fair marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t value. However in the case before us there is no dispute that the fair market value as declared by assessee is not less than the value determined by the DVO. Thus, the valuation determined by the DVO cannot be accepted as it is against the provision of Section 55A of the Act as applicable prior to the amendment. 8. However, there was amendment in section 55A of the Act with effect from 01.07.2012 which reads as under:- 55A. With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the [Assessing] Officer may refer the valuation of capital asset to a Valuation Officer-- (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant to the Assessment Year 2006-07. At the relevant time, very clearly reference could be made to Departmental Valuation Officer only if the value declared by the assessee is in the opinion of Assessing Officer less than its fair market value. 11. Therefore, respectfully following decision of Hon ble jurisdictional High Court in the case of CIT Vs. Gauranginiben S. Shodhan, 45 taxmann.com 356 (Guj) as well Bombay High Court judgment (supra), we are of the view that in the present year neither with help of amended proviso of section 55A a reference can be made nor under the old proviso, because value declared by the assessee as on 1.4.1981 is far more than fair market value. The ld.AO is therefore directed to re-compute capital by adopt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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